Lots of positives behind Monday’s rally — plus, Disney gets mostly good marks
Every weekday, CNBC Investment Club with Jim Cramer publishes Homestretch, an actionable afternoon update just in time for the final hour of trading on Wall Street. Market moves: Stocks traded higher as both the S&P 500 and the tech-heavy Nasdaq started the new week with gains of more than 1%. The Apple-led rally in the S&P 500 brought the index about 15 points closer to its record close on October 8. Apple, long known as Club, was on track to close at a record high following positive comments from Wall Street analysts and encouraging iPhone sales numbers. Another factor behind Monday’s overall market strength was optimism about easing trade tensions between the US and China. The Wall Street Journal reported that the Trump Administration has eased some of its “reciprocal” tariffs. Monday’s gains come ahead of a busy third-quarter earnings week when more than 80 companies in the S&P 500 are scheduled to report. Mouse House : Disney Club shares rose more than 1% on Monday after Citi raised its price target on the stock to $145 from $140 in its earnings preview note. Analysts expect results for the quarter largely in line with Street forecasts, while forecasting fiscal 2026 to come in above consensus, driven by stronger performance in Disney’s sports and entertainment businesses. However, Citi’s forecast for the experiences section was reduced due to softening macroeconomic conditions. Investors will focus on Disney’s direct-to-consumer subscriber trends after data subscription analytics firm Antenna showed monthly churn rates for Disney+ and Hulu doubled in September, from 4% and 5% to 8% and 10%, respectively, following the temporary suspension of Jimmy Kimmel’s ABC late-night show. The Citi note mentions cancellations based on previous data; Therefore, loss figures are starting to turn into expectations. Next up: No Club earnings will be announced after Monday’s close. Before the opening bell on Tuesday we get the Club name Danaher. Investors will also parse earnings from GE Aerospace, Lockheed Martin, RTX, General Motors, 3M and Coco-Cola. Netflix portfolio holds Capital One report after Tuesday’s close. (See here for a complete list of stocks in Jim Cramer’s Charitable Trust.) When you subscribe to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trading alert before buying or selling a stock in his charitable foundation’s portfolio. If Jim talked about a stock on CNBC TV, he would wait 72 hours after issuing the trading alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH THE DISCLAIMERS. NO CIVIL OBLIGATIONS OR DUTIES EXIST OR SHALL BE RESULTING FROM YOUR RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULT OR PROFIT CAN BE GUARANTEED.
